AI&SOCIETY - 22/09/2020

How Is Starbucks Using AI?

The most famous coffee retailer in the world, Starbucks, has surely had another successful business year. In the US alone, the seller marked a 6% increase over the past twelve months. Moreover, it seems like the popularity of paper cup coffees with the mermaid’s face doesn’t fade at all, as the US Starbucks Rewards loyalty program overcame incredible 17.6 million active members.

Continuous success gives the company enough space and comfort to invest in other sectors and technological development, particularly in the fields of artificial intelligence. Judging by CEO Kevin Johanson, the company sees AI not only as an investment but also as an essential part of its digital strategy.

DeepBrew

DeepBrew is an initiative to implement AI into even more aspects of the Starbucks business, from optimized labor allocation and personalization of services to inventory management.

Machine learning should make a huge difference and make it easy for everyone, from executive management to baristas. It also provides better feedback from consumers, as well as quality analytics, based on the previous experience.

Mastrena Espresso Machines

Currently, Starbuck delivers the latest Mastrena’s models to its stores across America. 

Not only do these advanced machines make premium espresso, but they also have a built-in IoT program able to store all the data about every single coffee ever made on one device. It can also monitor the condition of these devices and provide the necessary service.

This kind of data could further help Starbucks’ support center to exploit every available advantage of AI technology.

AI for Better Customer Experience

One of the latest Starbucks’ ventures in the AI field is its partnership with Microsoft, with a purpose to improve customer’s experience.

Specifically, the company wants to provide a service through the mobile app that will be able to recommend a specific beverage by analyzing previous orders and performing predictive AI analytics.

Imagine that AI is able to guess what is your favorite coffee flavor, and if you like it with extra cream or almond milk. Coffee lovers, in particular, usually have their specific choice of beverage, a regular coffee shop they visit every day and barista who always knows what they need.

AI can help the coffee retailer welcome its consumers better by offering them a more personalized service.

Starbucks wants to take advantage of AI power not only for a better understanding of customers’ needs but also for improving its partnerships, making better job distribution and managing resources. Also, for the following year, the company has allocated about 80% of the total cost for rebuilding existing locations and stores in the chain, in which it plans to introduce intelligent systems and analytics that should offer the most optimum solutions.

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